althom said:

alright mr smartypants!! can YOU tell me what a limited company is all about?

I have a question. Is money paid into paypal UK taxable if u're living in a foreign country? I don't pay taxes here or in the UK so is it only a matter of time before the inland revenue start wondering exactly how I'm living?

Faux said:

it's a good question, Faux ...I'm wondering, also, if I've been earning money in the UK and pay UK tax on it, when I come back to Australia will be taxed on it again? anyone know?

Natisse said:

I shouldn't imagine u would be Natisse.

Natisse said:

Natisse - what type of work will you be doing and how long will you be working in the UK? I'm no tax expert but do work for myself - if I can figure out what she meant, I will try to shed light on it.

Natisse said:

From my understanding, no, you will only be taxed once on any income you've earned here. It's really up to Australia's taxation laws whether they will tax you again but I believe there is a treaty between the UK and Australia which means that you will only be taxed once, in the UK, on any money you've earned. (Not 100% on this though, so it may be worth checking with your local tax office in Australia).

Natisse said:

Ok well it depends on what you are doing for work but it basically works like this. If you are going to be "self employed" IE not directly employed by a company and on their PAYE (pay as you earn) tax scheme then you will need to invoice for all of your work wether that be to 1 or multiple clients. If you do this and simply invoice for your work and your clients are businesses and not private clients (private client being something like cleaning a persons house etc) the by law the business you are invoicing should deduct the tax at source. (You invoice £100 sterling and they deduct tax ad pay you what is left) However they simply deduct tax on the full amount so you are no allowed tax allowances until the end of the year when you submit a tax return. Some people like this as they are saving up credit with the bastards at the inland revenue and at the end of the year will most probably get a tax rebate.
However if you invoice via a limited company then this is busuiness to business invoicing and so no tax is deducted. The full amount is paid in to the limited company and you then decide how to pay yourself. If you do it via PAYE then your tax is sorted. Or a more efficient way is to pay yourself a low wage at normal 23% tax and then, as a director of the limited company, pay yourself dividends to top up your wage. Dividends do not attract NI (National Insurance) payments and are only taxable at 18%.

Hope that helps

i own a limited company and it is very complicated i would recommend you consult an accountant about it they can tell you all you need to know.if you are going to be self employed it is worth asking an accountant to explain vat aswell